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Delfi to set up Indonesia-based JV; posts 9% rise in Q1 profit

SINGAPORE Mainboard-listed Delfi is setting up a joint venture company with South Korea's Orion Corporation to sell a range of joint branded confectionery products in Indonesia.

Both partners will have equal stakes in the JV, which will have an initial capital of US$3 million.

The JV's main products will be the choco pie and a soft cupcake product, banking on Indonesia's relatively young and growing population, increased urbanisation and by the growing demand for convenience products.

"Delfi and Orion believe that the synergistic and complementary combination of each partner's respective strengths will contribute to the success of the JV over the longer term," they said in a joint release.

For the first quarter ended March 31, 2016, Delfi reported a net profit of US$8.45 million, up 9.1 per cent year on year, while revenue dipped 2.5 per cent to US$103.55 million due to currency translation effects.

Earnings per share came to 1.38 US cents (including exceptional items), up from 1.27 US cents a year ago.